Unidentified men opened fire at his car near Batti Chowk. He had been going home after Friday prayers from Muhammadi Masjid.
According to initial details, the ASWJ leader was shot in the head. His body has been sent for post mortem.
The ASWJ has announced a country-wide protest against the attack.
Many members of ASWJ have been victims of target killings in the past year.
In 2001, Pakistan banned the sectarian group Sipah-e-Sahaba under pressure from the United States to crack down on militancy but the group changed its name to Ahle Sunnat Wal Jamat (ASWJ).
An offshoot of Sipah-e-Sahaba is the Lashkar-e-Jhangvi (LeJ), which has evolved into one of Pakistan’s most feared militant groups and has claimed responsibility for many attacks in the country.